Pennsylvania’s pension plan is second-most underfunded in the U.S.

A new study by the National Association of State Retirement Administrators finds that Pennsylvania has the second most underfunded pension plan in the United States.

The study, published this month, analyzes state retirement plans and their annual required contribution from 2001 to 2013. Over that time period, New Jersey had the most underfunded pension plan with Pennsylvania in a close second place.

“For both states, the chronic underfunding began when required contributions had dropped to very low levels by historical standards, including to as low as zero for some plans, chiefly as a result of strong investment gains experienced from 1995 to 1999,” the study said.

“When required contribution rates rose… the states experienced great difficulty in restoring the stream of pension funding payments that had previously been in place.”

For years, Pennsylvania legislators have worked to find a solution to its underfunded pension program for state employees. With little in the way of reform, the state has built up a $50 billion pension debt.

Gov. Tom Wolf addressed the state’s pension problem during his 2015-2016 budget before the entire Pennsylvania General Assembly.

Wolf said in his speech that he was going to stop the excessive fees that are going to Wall Street managers. According to Wolf, reforming the pension system’s management fee structure could save the state $1.3 billion over the next five years.

Wolf has said he also plans to refinance $3 billion of the state’s pension debt at lower rates.